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Confectionery in Guatemala

Sep 2014|Pages: 59

Price: US$1,900

About this Report

Executive Summary

Chocolate Confectionery

TRENDS

In 2014 current value sales of chocolate confectionery products are expected to increase by 8% to reach GTQ905 million. The country’s per capita consumption remains one of the lowest in the region, but it is increasing constantly. Chocolate confectionery being an impulse and indulgence type of product, distribution and location of chocolate confectionery in the stores are key to its success.

COMPETITIVE LANDSCAPE

In terms of brands, this is a highly fragmented category. In 2014, Ninoshka, SA and Fabrica Granada, SA are expected to split leadership with approximately 22% and 20% shares of current value sales. Shares in this category are achieved with multiple brands that appeal to different consumers. Ninoshka is a distributor for many imported brands such as M&M’s, Snickers and Milky Way. In the case of Fabrica Granada, its sales are based on products it manufactures locally under the umbrella Granada name.

PROSPECTS

Value sales are predicted to see a 4% CAGR at constant 2014 prices to reach GTQ1.1 billion by 2019. Demographic characteristics of the country, with a very young population, should provide for continued growth over the forecast period. Availability of different brands, prices and types of products should also help boost sales in the future.

Gum

TRENDS

In 2014 current value sales are set to reach GTQ274 million after an increase of 7%. Gum sales are expected to be boosted by value packs sold in modern channel retailers and targeting key consumers. Throughout the year leading manufacturers are set to emphasise, via mass media advertising, the freshness that their products provide.

COMPETITIVE LANDSCAPE

Kraft Centroamerica, SA is expected to continue leading gum, accounting for 86% of current value sales in 2014. The company has used several brands which target different consumer groups in order to have leadership in this category, such as Trident, Clorets and Bubbaloo. With all of its brands, it manages specific packs and prices for different retailing channels, offering small presentations for independent small grocers at low prices. The company is also responsible for the most innovation in the category, especially in terms of packaging and flavours.

PROSPECTS

Over the forecast period value sales are set to reach GTQ315 million in 2019 as a result of a 3% CAGR at constant 2014 prices. Sales in the category are set to be favoured by dynamism in terms of new flavours and constant advertising at points of sale. Guatemala’s demographics are also predicted to establish good conditions for development of gum, given a large young population.

Sugar Confectionery

TRENDS

It is expected that in 2014 current value sales will reach GTQ1.2 billion after an increase of 7%. The country’s population is very young; around 40% of the population is below 14 years of age. Additionally the population continues to increase at a rate of approximately 2.5% per year. This explains the success of sugar confectionery products in the country, as their key consumer group is very large and increases its size yearly.

COMPETITIVE LANDSCAPE

It is expected that in 2014 current value shares will be split almost evenly between Codisa and Productora Centroamericana de Alimentos, SA. These are very strong and active companies which constantly support their brands via mass media advertising, distribution and promotion. The role of these companies in traditional retailers is very important to their success. In these outlets both companies are very active in terms of mass distribution and providing constant support and promotion to their customers. It is common to see posters of brands by both companies in independent small grocers where they can capture the largest market share.

PROSPECTS

Over the forecast period value sales are predicted to see a 3% CAGR at constant 2014 prices to reach GTQ1.5 billion by 2019. Guatemala’s demographics, with around 40% of the population aged 14 or less, provides an ideal setting for success of this type of product. Given high maturity in the category and already high per capita consumption levels, sugar confectionery growth rates will remain close to population increases and are not set to experience large jumps.